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Establishing a Sustainable Labor Market in Developing Countries: A Perspective of Generational Differences in Household Wage

Author

Listed:
  • Ding Li

    (School of Political Science and Public Administration, Shandong University, Qingdao 266237, China)

  • María de los Ángeles Pérez-Sánchez

    (Department of Tourism and Hotel Management, School of Management, Zhejiang University, Hangzhou 310027, China)

  • Shun Yi

    (School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China)

  • Eduardo Parra-Lopez

    (Department of Business Management and Economic History, University of La Laguna, 38200 San Cristóbal de La Laguna, Spain)

  • Naipeng (Tom) Bu

    (Business School, Shandong University, Weihai 264209, China)

Abstract

The importance of a sustainable labor market is a critical and fundamental point for many developing countries, where global competitiveness is based on cheap labor. The aim of this empirical–analytical study, framed in China in the research context, is to approach this hot topic from the lens of household wage differences between generations. Using cross-sectional data, consisting of the China Dynamic Migrant Survey and Oaxaca-Blinder decomposition methods and quantiles, to analyze the data results confirmed the differences in wages between two generations of peasant and urban workers. Moreover, a distinctive tapering in the pay gap occurred among the new generation. Fundamentally, a big gap exists in the rate of return on education between urban and rural labor. According to the results of quantile decomposition, the old generation of peasant and urban workers demonstrate anti-discriminatory phenomena at very low and very high scores.

Suggested Citation

  • Ding Li & María de los Ángeles Pérez-Sánchez & Shun Yi & Eduardo Parra-Lopez & Naipeng (Tom) Bu, 2021. "Establishing a Sustainable Labor Market in Developing Countries: A Perspective of Generational Differences in Household Wage," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:21:p:11835-:d:665257
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    References listed on IDEAS

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